The cooperation-competition interplay in the ICT industry

Abstract

Purpose

Building on a business network perspective, the paper addresses the following question: Why do firms move between cooperation and competition in the context of high-tech industry? Hence, the purpose of this study is to contribute to the understanding of the complex cooperation–competition interplay between actors in a business network.

Design/methodology/approach

A single case study within the information and communication technology industry is undertaken and illustrates the cooperation–competition interplay in projects of technology.

Findings

The authors discuss the implications of interdependence on relationship dynamics. The main argument is that business relationships survive despite periods of competition if interdependence is high. Thus, firms move between a state of cooperation and a state of competition within business relationships, rather than ending the relationships when starting to compete.

Practical implications

This study suggests that managers need to pay attention to how different degrees of interdependence lead firms to be embedded in cooperative or competitive forms of relationships.

Originality/value

The paper contributes to the ongoing debate about cooperation, competition and coopetition within international business and industrial marketing literature. An interesting aspect in the paper is the cooperation–competition interplay, which is associated with positioning. A centrally positioned actor will choose who to bring into the partnership, with positioning concomitantly changing from project to project. The willingness of being a central actor, i.e. a project leader, places traditional buyer–supplier partners in competition. Thus, cooperation and/or competition becomes contextual.

Citation

Leite, E., Pahlberg, C. and Åberg, S. (2018), "The cooperation-competition interplay in the ICT industry", Journal of Business & Industrial Marketing, Vol. 33 No. 4, pp. 495-505. https://doi.org/10.1108/JBIM-02-2017-0038